Tuesday, February 18th, 2025

Indian retail sector saw a marginal increase of 5 percent in December, total consumption was low


According to the 55th Retail Business Survey of the Retailers Association of India (RAI) released on Monday, there has been a 5 percent increase in sales of Indian retail sector in December 2024 compared to the same festive period last year.

The survey shows that South India recorded the highest 6 percent sales growth, while West and North India recorded a 5 percent increase. There was only 4 percent increase in sales growth in eastern India.

The survey exposed the regional difference in development, leading to a 7 percent increase in sales in North India, followed by both West and South recorded a 5 percent increase in sales growth.

While observing the data, Kumar Rajagopalan, CEO of the Retailers Association of India (RAI), said, “The survey of RAI shows 5 percent.

In December, there is pressure on the discretionary expenditure of other payment obligations for inflation and EMI etc. The wedding season promoted some categories like apparel and jewelery, but overall consumption was low. In particular, QSR is showing an early signal of reform, which presents a glimpse of optimism for the region. With the Union Budget approaching, the retail industry expect measures that will address inflation and increase the trust.

The survey shows that South India recorded the highest 6 percent sales growth, while West and North India recorded a 5 percent increase.

The survey stated that in contrast, Eastern India saw only 4 percent increase.

The survey said that in the context of categories, the Accelerated-Service Restaurant (QSR) recorded the highest growth of 10 percent, followed by 7 percent compared to the period of December 2023 last year in apparel, food and grocery and sports items last year. The growth was seen. The increase in the QSR category indicates priority to consumers’ food habits.

The jewelery section also saw a strong growth of 3 percent, indicating an increase in discretionary spending on luxury goods. Meanwhile, a moderate growth was observed in consumer durable items and electronics (2 percent) and apparel and fabric (7 percent), which indicates that consumers are selective shopping.

Sales growth in the food grocery sector recorded 7 percent, while the sales growth of shoes continued to struggle at 3 percent. According to the survey, an impressive increase in sales of sports goods recorded an 8 percent increase.

According to the survey, sales of beauty, welfare and personal care recorded a 6 percent increase.

The findings of the survey suggest that consumers are willing to spend there where they are priced, and this trend can shape the strategies that retail vendors adopt during the preparation of the festive season.



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